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The Algorand price started the week off by setting a new two-year high. However, since then, it’s been all downhill, and ALGO has lost -24%. However, Algorand (ALGO) has dropped below $2.000 several times over the last few days, only to make a comeback, so is it any different this time around?
Monday marked the top of an incredible run for ALGO. When the cryptomarket was slammed lower on the 7th of September, Algorand dropped below $1.0000. Six days later, after a 155% rally, the price was $2.5500. Although, Algorand was starting to look stretched, and the price action was frothy and signalling a near-term top, which led me to ask if the price was too high? Since then, even as Bitcoin (BTC) and Ethereum (ETH) march higher, Algorand has been rolling over. Furthermore, signs are emerging that the correction could gather pace, sending ALGO sharply lower.
ALGO Technical Analysis
Looking at the 4-hour chart, we see the Algorand price has been chopping around between $1.8500 and $2.5500 for the last week. The higher highs, and up until now, higher lows have formed a bear flag pattern. At the moment, AlGO is trading at $1.9500, breaking down beneath the lower edge of the flag at $2.000.
This should lead to an extension to last Fridays $1.8300 low. IF the price slides below $1.8300, it could encounter stop-loss selling, forcing the price down into the $1.5000-$1.6000 range. Until the price recaptures the flag and advances above $2.0000, I expect the market to trade with a negative tone. Therefore, should ALGO climb above The $2.0000 barrier, my bearish view becomes invalid.
Algorand Price Chart (4-Hour)
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